The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding Share Premium 100,000 shares P3.000.000 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.
The stockholder's equity section of Pink Company's December 31, 2011 balance sheet consisted of the following: Ordinary shares, par value P30 per share, authorized, Issued and outstanding Share Premium 100,000 shares P3.000.000 1,200,000 Retained earnings (deficit) Total (2,100,000) P2.100,000 On January 2, 2012, Pink put into effect a stockholder-approved quasi-reorganization by reducing the par value of the shares to P10 and eliminating the deficit against the share premium.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Immediately after quasi-reorganization, what amount should Pink report as share premium?
a. 3,200,000
b. 2,100,000
c. 1,200,000
d. 1,100,000
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